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V3487-20 2 December 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · imputación de rentas inmobiliarias

Imputed real estate income applies to industrial units even if they cannot be rented

A taxpayer inquired whether they must pay imputed real estate income for an industrial unit that cannot be rented or sold due to legal restrictions. The Directorate-General for Taxes (DGT) ruled that since the property is capable of being used, the imputation of income applies and no expenses may be deducted.

The question raised

It is requested to determine whether the imputation of real estate income is appropriate regarding the warehouse and whether the expenses associated with it, such as Property Tax (IBI), insurance, depreciation, and maintenance, are deductible.

The DGT's ruling

The imputation of real estate income does not depend on the effective use of the property, but rather on its availability to the owner. The law only excludes imputation if the property is assigned to an economic activity, generates capital income, is under construction, or is not capable of use due to urban planning reasons. In this case, the warehouse is capable of use, therefore the imputation of income is appropriate pursuant to Article 85 of the Personal Income Tax Law (LIRPF), without the possibility of deducting associated expenses.

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